Vornado, Reliance Form Retail Venture in India

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Paramus, N.J. Vornado Realty Trust said Wednesday it has formed a joint venture with India's Reliance Industries Ltd. to invest in shopping centers in India.

Vornado, a Paramus, N.J.-based real estate investment trust, and Reliance will each commit up to $250 million to the 50/50 venture to acquire, develop and operate shopping centers in key Indian cities.

The centers will contain 500,000 to 1 million or more sq. ft., and "typically be anchored by a hypermarket to be owned and operated by Reliance," Vornado said.

Reliance, which operates more than 700 retail stores in India, is India's largest publicly traded company, with market capitalization of more than $75 billion and annual revenue of more than $34 billion.

The firm has interests in the petrochemical business, in addition to exploration, refining and retail sales of oil.